SHANGHAI, Jan 10 (SMM) - In order to promote the sustainable and healthy development of the comprehensive utilisation of resources, the Ministry of Finance and the State Administration of Taxation issued the Announcement on Improving the Value-Added Tax Policy for Comprehensive Utilisation of Resources (hereinafter referred to as the Announcement) on December 30, 2021. The Announcement will be officially implemented from March 1, 2022.

SMM believes that this policy will further standardise the development of the lithium battery recycling industry, and support the development of legitimate recycling enterprises.

Recycling enterprise qualification: The recycling enterprises must meet the requirements of the management measures for renewable resource recycling, be registered as a market entity, and complete the filing of renewable resource recycling operators at the department of commerce, which is conducive to cracking down on illegal lithium battery recycling companies.

Corresponding invoices and vouchers: The taxpayers must obtain the specified invoices or vouchers before they can enjoy immediate tax refund; taxpayers should establish an account for the purchase of renewable resources and keep it for future reference.

Technical standards for recycled products: The Announcement adds the technical requirements for lithium carbonate, lithium chloride, lithium fluoride, cobalt sulphate, nickel sulphate, and lithium hydroxide. The comprehensive recovery rate of nickel, cobalt, and manganese should not be less than 98%, and the recovery rate of lithium should not be less than 85%. The types of recycled products are further categorised to ensure the intensive utilisation of resources and enable the production of lithium battery materials.